A Powerball lottery ticket costs $2, but how much goes to the jackpot? And what else does the ticket pay for?
It is common to wonder how much of your cost goes toward the jackpot and how much of the $2 you spend goes into other avenues.
The $2 Ticket
In January 2012, Powerball raised the price of tickets from $1 to $2. The price rise came along with a series of updates to the Multi-State Lottery Association(MUSL) game. Along with doubling the price per ticket, Powerball also doubled the price of the minimum jackpot from $20 million to the current $40 million.
The Powerball revamp also accounts for more ways to win, and a decrease in the number of red balls from 39 to 35. This change increased the chances of winning from 1 in 195 million to 1 in 175 million.
Where the money goes
The specific amounts vary between each state, but each lottery puts more than half of the lottery sales into the jackpots for lotteries. An average of 60% of lottery revenues per state adds to the jackpot amounts. This means for the $2 you spend on a lottery ticket, at least $1 goes to the amount of the advertised jackpot.
The remainder of the money is different for each state. MUSL, along with the North American Association of state and Provincial Lotteries (NASPL) are both committed to giving back. MUSL is a non-profit organization that is owned in part by each of the 33 member states. Each state government selects an institution to benefit from the lotteries. These include beneficiaries such as education, parks and wilderness, Amber alert systems, and more. Beneficiaries of lotteries receive approximately 25% of all lottery ticket sales. Lottery sales give as much as $1 billion back to each state every fiscal year.
The remainder of the funds is split between lottery retailers and general lottery and gaming expenses.
All totalled, if you spend $2 on a lottery ticket, you can expect at least $1 to go into the jackpot and $.25 to go back to benefit your state.
For more information on how your lottery ticket goes to the state and the estimated jackpot, go to your state lottery site or the Powerball webpage.